Health Care Industry: Ineffective Financial Management Practices

Health care industry establishes operating controls and procedures to ensure that the task at hand is accordance with the industry practices as well as regulatory guidelines and policies. These controls include financial management activities that help management rein over the health care operating cost and to improve the financial profitability long and short term. However, there are still some ineffective financial management practices. The most organization should be regular check their organization budgets to make sure it is effective. One ineffective financial management is not having the correct variances between your planned performance and budget objectives. When having large variances it can sometimes indicate poor estimates, as well
as ineffective management, polices concerning the budget. Another ineffective is the lack of control and lack of knowledge when preparing the budget. Without the working knowledge of the budget, it’s harder to control and maintain an operational budget.